The health of the cryptocurrency industry is on the rise, as increased regulation has cracked down on shady Initial Coin Offerings (ICOs) and institutions continue to offer investment.
While the industry’s market cap has yet to return to its late 2017 peak, crypto market intelligence firm Flipside Crypto has found the industry continues to show its value in other ways.
“When cryptocurrency prices are down, everyone worries about industry health,” said Dave Balter, CEO of Flipside Crypto. “But price is a poor indicator for whether cryptocurrency projects and platforms are gaining customers or delivering product to the market.”
To provide a more accurate reading of the industry’s health than crypto prices, Flipside Crypto has developed a mechanism than considers a number of metrics. The mechanism, known as FCAS25, tracks the top 25 crypto projects, measuring user activity, developer behaviour and market maturity to assign each a Fundamental Crypto Asset Score (FCAS).
Crypto health: More than the Bitcoin price
According to Balter, the FCAS25 shows that the cryptocurrency industry is far from death’s door:
“The data proves that the cryptocurrency industry is far from over. As a matter of fact, it’s humming.”
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The FCAS25 shows that the industry has seen significant improvement in developer behaviour, showing that despite the crypto hype having ended in 2018, those developing the industry continue to believe in its potential.
“Developer behaviour has demonstrated remarkable consistency and resilience over time, gradually increasing among the FCAS25 throughout the last two years,” said Eric Stone, Chief Data Scientist of Flipside Crypto. “This demonstrates there continues to be a healthy commitment among the teams supporting the ongoing improvements to the top crypto projects.”
Surprisingly, while customer activity did peak in December 2017, customer activity didn’t suffer as a result of falling Bitcoin price. In fact, while the industry’s market cap has fallen to a new low in 2019, customer activity has been at its peak.
“User activity saw a dramatic increase toward the end of 2017, but unlike the public-exchange-based metrics such as price, this metric has sustained its post-crypto-bubble levels, and even increased among the top projects,” Stone said.